The banking sector is accelerating and making breakthroughs in digital transformation.

Customers scan transaction codes for online transactions at Vietnam Foreign Trade Commercial Bank ( Vietcombank ). *Photo: Do Tam*

The key to connecting an open ecosystem.

Governor of the State Bank of Vietnam, Nguyen Thi Hong, stated that for the banking sector, data is the key to connecting an open ecosystem, transforming banks into platforms integrating digital value – from healthcare and education to commerce…, providing a seamless and continuous experience for customers. Data is also an input factor in the decision-making process, improving operational efficiency, helping to forecast risks, prevent fraud, and protect the national financial system. Therefore, the banking sector has continuously innovated and upgraded its data infrastructure, focusing on connecting with other industries and sectors, gradually building a smart and sustainable digital ecosystem.

The latest statistics show that the interbank electronic payment system processes an average of VND 820 trillion per day, while the electronic financial switching and clearing system processes 26 million transactions daily. The national credit information infrastructure has been upgraded to increase processing capacity, automatically update data, and expand data collection and updating both within and outside the industry, with a high data update success rate of over 98% from credit institutions. More than 113 million individual customer records and over 711,000 institutional customer records have been verified using biometric data (reaching over 66% of the total number of institutional payment accounts conducting transactions via digital channels). Many basic operations have been fully digitized (savings deposits, time deposits, opening and using payment accounts, opening bank cards, e-wallets, money transfers, lending, etc.).

The collection, cleaning, cross-referencing, and verification of biometric data have been given special attention. To date, over 113 million individual customer records and accounts, and over 710,000 other records have been collected, cross-referenced, and verified using biometric information. The system for alerting users of suspected fraudulent accounts, after a month of pilot implementation at several banks, has helped provide information to over 40,000 customers, enabling them to stop transferring money upon receiving the alert.

Implementing Resolution No. 57-NQ/TƯ dated December 22, 2024, of the Politburo on breakthroughs in the development of science, technology, innovation, and national digital transformation; following the direction of the Government and the Prime Minister, and in the spirit of accompanying other sectors and fields, the State Bank of Vietnam has developed and directed commercial banks to implement a credit program of VND 500,000 billion for enterprises investing in infrastructure and digital technology to carry out key national projects in the fields of transportation, electricity, and digital technology according to the list announced by ministries and sectors.

Commercial banks are all getting involved.

According to Phung Nguyen Hai Yen, Deputy General Director of Vietnam Foreign Trade Commercial Bank (Vietcombank), Vietcombank ensures that 100% of digital transactions are identified, digitally signed, and authenticated, and electronic contracts are also identified and digitally signed. Recently, Vietcombank successfully connected its VCB Digibank application with the Ministry of Public Security's VNeID centralized digital signature portal, enabling millions of customers to register for digital signatures online in less than a minute. With this digital signature, customers can conduct electronic transactions at Vietcombank as well as online public services; electronic tax declaration and payment; bidding and other civil transactions. Vietcombank also provides customers with digital services starting from online disbursement, followed by online guarantees, online foreign exchange trading, online investment, etc.

At the Vietnam Agricultural and Rural Development Bank (Agribank), Deputy General Director Hoang Minh Ngoc stated that the bank has brought digital identity technology to remote areas, ensuring that social security policies reach the right people at the right time. Currently, Vietnam has over 13 million people eligible for social security, including 3.7 million who need assistance, and over 1.7 million people with disabilities who are unable to work. Many people, especially in remote areas, have to travel for hours through forests and across streams, queuing in the rain and sun just to receive a subsidy. Therefore, Agribank has developed solutions for opening accounts remotely, verifying digital identity via VNeID, and enabling cashless payments.

Agribank has issued 9 million accounts and 12 million cards in rural and remote areas. Simultaneously, Agribank has supported over 500,000 vulnerable customers in receiving monthly social security benefits automatically through their accounts, with over 210 trillion VND disbursed through the bilateral insurance-banking system. Agribank's next step is to integrate with the national digital identity platform (VNeID) so that people can open bank accounts at Agribank directly through the VNeID application without needing paperwork or visiting a branch in person.

Other major banks such as BIDV, Vietinbank, Techcombank, MB... are also investing heavily in technology infrastructure and data analytics using artificial intelligence (AI) to personalize customer experiences. It is clear that digital transformation in the banking industry is an inevitable and strategic trend that no bank can afford to ignore.

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